Delta Leads as Oil-Producing States Share N970bn 13 Derivation, Anambra Joins List

Delta Leads as Oil-Producing States Share N970bn 13 Derivation, Anambra Joins List

  • Delta State received the highest allocation as oil producing State in Nigeria
  • Akwa Ibom, Bayelsa, and Rivers states closely follow the state as highest earning states
  • Anambra State joined the league of oil-producing states in Nigeria to get the 13% oil derivation

Nigeria's oil-producing states received a massive N970.2 billion as 13% oil derivation funds in 2022, accounting for N521.5 billion higher than N448.7 billion shared the year before.

Delta State received N296.6 billion, accounting for 30.5% of the total, while Akwa Ibom follows with N222.5 billion.

Oil-producing states, oil derivation
Governors Soludo, Okowa, Diri and Emmauel
Source: UGC

Oil Revenue surges in 2022

The information is obtained from the monthly Federal Account Allocation Committee (FAAC) report by the National Bureau of Statistics (NBS).

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Nairametrics reports that a review of the 2022 allocation shows that the amount shared in 2022 represents the highest in the three years of FACC, higher than the N424 billion, N536 billion, N552.5 billion, and N346.8 billion received in 2020, 2019, 2018, and 2017 respectively.

The progress in the 13% oil derivation fund to the oil-producing states is attributed to the increase in crude oil prices in 2022 amid the war in Ukraine.

Global oil prices gained more than 43% in 2022.

Delta State led the pack with the highest amount in 2022, with N296.6 billion, representing 30.57% of the total allocations to the nine oil-producing states.

Delta State's oil revenue surged 109% compared to the N141.9 billion received in 2021.

Top oil-producing states and the amount received

  • Akwa Ibom: N222.5 billion
  • Bayelsa State: with N188 billion
  • Rivers: N169.8 billion
  • Edo: N37.5 billion,
  • Ondo: N25.9 billion
  • Imo: N18.6 billion
  • Abia N6.9 billion
  • Anambra N4.2 billion

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Anambra joins the list.

Anambra State made history as the latest oil-producing state in the country to be added to the list, receiving $4.3 billion in revenue.

The erstwhile Governor of Anambra State, Willie Obiano, announced in 2022 that the state would begin to receive the 13% allocation from FAAC.

Obiano received the information from the Nigeria Midstream and Downstream Pricing and Regulatory Agency (NMDPRA), which confirmed the lifting of oil in commercial quantity from the state.

States share billions despite huge domestic debt

This earning comes 10 years after Orient Petroleum discovered oil in the state, placing it on a strategic reserve.

The FAAC allocation of 13% derivation disbursement to the states in Nigeria has remained controversial as most of the states are some of the highest indebted states in Nigeria.

Also, states like Bayelsa have been named the country's poverty capital after Sokoto.

Two states on the list are among the states in Nigeria with the highest domestic debt, NBS data states.

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5 Nigerian states owe 34% of the $5.34 trillion total domestic debt

Legit.ng reported that five Nigerian states hold more than a third of the total domestic debt owed by state governments in Nigeria.

The highest indebted states are Lagos, Delta, Ogun, Akwa Ibom, and Imo.

The Debt Management Office (DMO) said the total domestic debt owed by 36 state governments and the Federal Capital Territory went up by N879.50 billion in 2022 to N5.337 trillion as of December 2022.

Source: Legit.ng

Authors:
Pascal Oparada avatar

Pascal Oparada (Business editor) Pascal Oparada is a Mass Communications Graduate from Yaba College of Technology with over 10 years of experience in journalism. He has worked in reputable media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng

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